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Small business alarmed by Canada Post price hikes

TORONTO, Dec. 11, 2013 /CNW/ - The Canadian Federation of Independent
Business (CFIB) is alarmed to learn of massive price hikes at Canada
Post as part of its Five-point Action Plan.

"Introducing massive lettermail price hikes for residential and business
consumers is not the way to rescue a failing government entity," said
Dan Kelly, CFIB president. "These hikes will have a significant impact
on many small businesses that use the mail to connect with customers or
invoice and pay suppliers."

In an October 2013 survey of small business owners, it was found that 40
per cent send at least 50 pieces of lettermail per month and 98 per
cent still use lettermail every month.

"61 per cent of small business owners said sending and receiving mail
was very important to their business operations and a further 30 per
cent said it was somewhat important," Kelly said. "Three quarters of
small firms said they oppose significant price hikes like the ones
announced by Canada Post today."

With respect to ending door-to-door delivery, two-thirds of CFIB members
supported a move to community mailboxes in the recent survey.

"While electronic communication has undoubtedly created financial
pressures for Canada Post, ridiculous wage, benefit and pension
entitlements are the real root causes of the problem," added Kelly.
"While the plan takes some baby steps on Canada Post's cost structure,
the corporation should be working far faster to address its wage and
pension problems rather than driving more customers away from using its
services through giant hikes. This should be a lesson for governments
and public sector unions of the folly of ignoring massive unfunded
pension liabilities and high wage structures."

CFIB is Canada's largest association of small and medium-sized
businesses with 109,000 members across every sector and region.